Information system ralph CH05

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Fundamentals of Information Systems, Fifth Edition Chapter Electronic and Mobile Commerce and Enterprise Systems Principles and Learning Objectives • Electronic commerce and mobile commerce are evolving, providing new ways of conducting business that present both opportunities for improvement and potential problems – Describe the current status of various forms of ecommerce, including B2B, B2C, C2C, and mcommerce – Identify several e-commerce and m-commerce applications – Identify several advantages associated with the use of e-commerce and m-commerce Fundamentals of Information Systems, Fifth Edition Principles and Learning Objectives (continued) • E-commerce and m-commerce require the careful planning and integration of a number of technology infrastructure components – Identify the key components of technology infrastructure that must be in place for e-commerce and m-commerce to work – Discuss the key features of the electronic payment systems needed to support e-commerce and mcommerce Fundamentals of Information Systems, Fifth Edition Principles and Learning Objectives (continued) • An organization must have information systems that support the routine, day-today activities that occur in the normal course of business and help a company add value to its products and services – Identify the basic activities and business objectives common to all transaction processing systems – Identify key control and management issues associated with transaction processing systems Fundamentals of Information Systems, Fifth Edition Principles and Learning Objectives (continued) • A company that implements an enterprise resource planning system is creating a highly integrated set of systems, which can lead to many business benefits – Discuss the advantages and disadvantages associated with the implementation of an enterprise resource planning system – Identify the challenges multinational corporations must face in planning, building, and operating their TPSs Fundamentals of Information Systems, Fifth Edition An Introduction to Electronic Commerce • Electronic commerce – Conducting business activities electronically over computer networks such as the Internet, extranets, and corporate networks • Business activities that are strong candidates for conversion to e-commerce – Paper-based – Time-consuming – Inconvenient for customers Fundamentals of Information Systems, Fifth Edition Business-to-Business (B2B) E-Commerce • A subset of e-commerce where all the participants are organizations • Useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs Fundamentals of Information Systems, Fifth Edition Business-to-Consumer (B2C) E-Commerce • Business-to-consumer (B2C) e-commerce – Businesses sell their products directly to consumers • Elimination of intermediaries – Squeezes costs and inefficiencies out of supply chain – Can lead to higher profits for companies and lower prices for consumers Fundamentals of Information Systems, Fifth Edition Consumer-to-Consumer (C2C) E-Commerce • Consumer-to-consumer (C2C) e-commerce – Consumers sell directly to other consumers – Example: eBay Fundamentals of Information Systems, Fifth Edition eGovernment • Use of information and communications technology to – Simplify the sharing of information – Speed formerly paper-based processes – Improve the relationship between citizen and government • Forms of eGovernment – Government-to-consumer (G2C) – Government-to-business (G2B) – Government-to-government (G2G) Fundamentals of Information Systems, Fifth Edition 10 An Overview of Enterprise Resource Planning • ERP systems – Evolved from materials requirement planning systems (MRP) • First to take on the challenge of implementing ERP – Large organizations; members of the Fortune 1000 Fundamentals of Information Systems, Fifth Edition 54 Advantages of ERP • Improved access to data for operational decision making • Elimination of costly, inflexible legacy systems • Improvement of work processes • Upgrade of technology infrastructure Fundamentals of Information Systems, Fifth Edition 55 Disadvantages of ERP Systems • • • • • Expense and time in implementation Difficulty implementing change Difficulty integrating with other systems Risks in using one vendor Risk of implementation failure Fundamentals of Information Systems, Fifth Edition 56 ERP for Small and Medium Size Enterprises (SMEs) • SMEs – Can achieve real business benefits from their ERP efforts • With open-source software – Anyone can see and modify the source code to customize it to meet their needs Fundamentals of Information Systems, Fifth Edition 57 Fundamentals of Information Systems, Fifth Edition 58 Production and Supply Chain Management • ERP systems follow a systematic process for developing a production plan – – – – – – – Sales forecasting Sales and operations plan Demand management Detailed scheduling Materials requirement planning Purchasing Production Fundamentals of Information Systems, Fifth Edition 59 Customer Relationship Management and Sales Ordering • Goals of CRM – Understand and anticipate the needs of current and potential customers to increase customer retention and loyalty – Optimize the way products and services are sold • Sales ordering – Set of activities that must be performed to capture a customer sales order Fundamentals of Information Systems, Fifth Edition 60 Fundamentals of Information Systems, Fifth Edition 61 Financial and Managerial Accounting • Financial accounting – Capturing and recording all transactions that affect a company’s financial state • Managerial accounting – Provides data to enable the firm’s managers to: • • • • Assess the profitability of a given product Identify underperforming sales regions Establish budgets Make profit forecasts Fundamentals of Information Systems, Fifth Edition 62 Hosted Software Model for Enterprise Software • Goal – To help customers acquire, use, and benefit from the new technology while avoiding much of the associated complexity and high start-up costs • Potential problems – Can occur if the hosted software vendor cannot provide a reliable operation environment Fundamentals of Information Systems, Fifth Edition 63 Fundamentals of Information Systems, Fifth Edition 64 International Issues Associated with Enterprise Systems • Challenges that must be met by an enterprise system of a multinational company – – – – Different languages and cultures Disparities in IS infrastructure Varying laws and customs rules Multiple currencies Fundamentals of Information Systems, Fifth Edition 65 Summary • E-commerce – – – – Business-to-business (B2B) Business-to-consumer (B2C) Consumer-to consumer (C2C) Mobile commerce • Wireless Application Protocol (WAP) – Standard set of specifications to enable development of m-commerce software for wireless devices Fundamentals of Information Systems, Fifth Edition 66 Summary (continued) • Electronic payment systems – Key component of the e-commerce infrastructure • Transaction processing systems (TPSs) – The heart of most information systems in businesses today • Basic activities of TPSs – – – – Data collection, data editing Data correction, data manipulation Sorting, categorizing, summarizing Data storage and document production Fundamentals of Information Systems, Fifth Edition 67 Summary (continued) • Enterprise resource planning (ERP) – Software that integrates activities throughout a business • Many SMEs – Have found open source ERP systems to be effective solutions to their transaction processing and management reporting needs • Production and supply chain management process – Starts with sales forecasting Fundamentals of Information Systems, Fifth Edition 68 ... following types of systems – Order processing systems – Accounting systems – Purchasing systems Fundamentals of Information Systems, Fifth Edition 49 Transaction Processing Systems for Small and... transactions into a batch Fundamentals of Information Systems, Fifth Edition 35 Fundamentals of Information Systems, Fifth Edition 36 Fundamentals of Information Systems, Fifth Edition 37 Transaction... card Fundamentals of Information Systems, Fifth Edition 31 Fundamentals of Information Systems, Fifth Edition 32 An Overview of Enterprise Systems: Transaction Processing Systems and Enterprise
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